Farrauto v. Keowongwan

166 Misc. 2d 804, 634 N.Y.S.2d 346, 1995 N.Y. Misc. LEXIS 516
CourtYonkers City Court
DecidedAugust 23, 1995
StatusPublished
Cited by2 cases

This text of 166 Misc. 2d 804 (Farrauto v. Keowongwan) is published on Counsel Stack Legal Research, covering Yonkers City Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farrauto v. Keowongwan, 166 Misc. 2d 804, 634 N.Y.S.2d 346, 1995 N.Y. Misc. LEXIS 516 (N.Y. Super. Ct. 1995).

Opinion

OPINION OF THE COURT

Thomas A. Dickerson, J.

After trial the court makes the following findings of fact and conclusions of law:

[806]*806In 1987 the defendant decided to purchase a multifamily house located at 291 McLean Avenue, City of Yonkers, New York (the McLean Avenue property). The McLean Avenue property contained seven apartments which had been generating rents since, at least, 1982 when the building was purchased by its then owner.

The defendant retained the plaintiffs to represent his interests in purchasing the McLean Avenue property and agreed to pay plaintiffs’ fee of $1,500 plus costs. The plaintiffs reviewed the contract of sale which contained a rent roll identifying the seven tenants and the apartments they occupied, their security deposits, their monthly rents and the expiration dates of their leases.

On December 23, 1987 the plaintiffs attended the closing on the McLean Avenue property for which the defendant paid $165,000. In consideration for their legal services the defendant paid plaintiffs’ fees and costs of $1,536.50.

Thereafter, plaintiffs continued to represent the defendant in a variety of matters related to the McLean Avenue property.

For three and one-half years the defendant rented out the seven apartments in the McLean Avenue property.

On July 8, 1991 the Yonkers Bureau of Housing and Buildings (BHB) served defendant with a notice of violation stating "As a result of an inspection made * * * on June 20, 1991, you are hereby notified that the * * * premises owned * * * by you is in violation of the following sections of the New York Uniform Fire Prevention and Building Code, or Yonkers Fire and Building Code, or both: Owner constructed an illegal basement apartment (IB) in a (6) six family apartment home. The apartment consists of a kitchen, living room, 2 rear bedrooms and 2 baths * * * Yonkers Fire & Building Code — 33-3-1 A, 33-5-1A, 33-5-6 * * * note: correction of all violations must COMMENCE IMMEDIATELY”.

Plaintiffs recommended that an application be made to the Yonkers Zoning Board of Appeals for a "variance to permit the premises to be used as a seven-family house”. The defendant agreed with this strategy and authorized plaintiff to seek a variance. After considerable effort the plaintiffs obtained a variance which required that a new certificate of occupancy (CO), building permits, alarm systems and plans be obtained. After an initial denial a new CO was finally issued on June 2, 1992 nearly one year after defendant received the notice of violation. The CO now described the McLean Avenue property as "7-family multiple dwelling”.

[807]*807The defendant refused to pay plaintiffs for their services in obtaining a variance and new CO. As a consequence, plaintiff commenced this breach of contract action seeking unpaid legal fees and costs of $3,496.56.

In response, the defendant counterclaimed charging plaintiffs with "malpractice and negligence * * * in representing the Defendant in the purchase of the (McLean Avenue property)” and seeking damages of $25,000.

DISCUSSION

Plaintiffs Shall Have Their Fees And Costs

The defendant authorized the plaintiffs to obtain a variance and CO for the McLean Avenue property and agreed to pay plaintiffs their fees and costs. The plaintiffs rendered appropriate legal services and expended monies on defendant’s behalf and obtained the variance and the CO as requested. Several bills were sent to defendant to which no objections were made. In addition, the defendant neither challenged the quality of plaintiffs’ services nor the results achieved (see, e.g., Glazer v Falberg, 85 AD2d 938, 939 [1981] ["No objection was ever interposed to any of these schedules or bills. Nor were there any complaints about the quality of the services.”]; Fink, Weinberger, Fredman, Berman & Lowell v Petrides, 80 AD2d 781 [1981] ["no challenge to the legitimacy or accuracy of the bill was ever made”]). The plaintiffs shall have judgment against defendant for $3,496.56 together with 9% interest from January 23, 1992.

Defendant’s Malpractice Claim

The defendant claims that in 1987 plaintiffs failed to investigate and discover that apartment IB in the McLean Avenue property was illegal and, hence, unrentable. Notwithstanding that seven apartments were listed in the contract of sale it is claimed that plaintiffs negligently failed to advise defendant that the property had only six legal and rentable apartments. As a consequence the defendant lost 13 months’ rent ($6,500), paid $3,573.54 in costs related to obtaining a variance and CO and incurred legal fees and costs of $3,496.56.

Statute Of Limitations

As a threshold issue the plaintiffs have moved to dismiss defendant’s counterclaim on the grounds that it is barred by a [808]*808three-year Statute of Limitations (see, e.g., Tal-Spons Corp. v Nurnberg, 213 AD2d 395, 396 [1995]; Goldberg v Bosworth, 215 NYS2d 849 [Sup Ct, Kings County 1961]). Specifically, plaintiffs assert that the alleged malpractice occurred on or prior to the December 23, 1987 closing and that defendant’s counterclaim was filed on January 25, 1993. Hence, since the counterclaim was asserted more than three years after the alleged malpractice took place it should be dismissed.

The plaintiffs’ motion must be denied for two reasons. First, the plaintiffs continued to represent defendant on various real estate matters involving the McLean Avenue property ("There were a number of times when we represented [defendant] with regard to continuing problems that one normally has with a residential building”). Under the continuous representation rule the Statute of Limitations would be tolled until plaintiffs’ representation ceased (see, e.g., Glamm v Allen, 57 NY2d 87, 94 [1982] ["Since it is impossible to envision a situation where commencing a malpractice suit would not affect the professional relationship, the rule of continuous representation tolls the running of the Statute of Limitations on the malpractice claim until the ongoing representation is completed”]; Tal-Spons Corp. v Nurnberg, 213 AD2d 395, supra; Anderson Co. v Devine, 202 AD2d 382 [1994]; Stampfel v Eckhardt, 143 AD2d 184 [1988]; Muller v Sturman, 79 AD2d 482, 485-486 [1981] ["continuous representation doctrine * * * envisions a relationship between the parties that is marked with trust and confidence * * * involves a continuity of the professional services from which the alleged malpractice stems”]).

It is reasonable to conclude that plaintiffs continuously represented the defendant regarding the McLean Avenue property from before the December 23, 1987 closing to the issuance of the CO on June 2, 1992. Hence, the three-year Statute of Limitations would have been tolled until June 2, 1992 making defendant’s assertion of his counterclaim on January 25, 1993 timely.

Second, plaintiffs were hired to perform specific legal services, i.e., represent defendant in purchasing the McLean Avenue property. At the very least, such representation would include reviewing the contract of sale and verifying the accuracy of the promises therein (i.e., were there seven legal and rentable apartments?); contacting governmental agencies and determining if there were any encumbrances on the property including code violations, obtaining title insurance and attending the closing.

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Bluebook (online)
166 Misc. 2d 804, 634 N.Y.S.2d 346, 1995 N.Y. Misc. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farrauto-v-keowongwan-nyyonkerscityct-1995.